The semiconductor industry is facing a time of reckoning as concerns about overspending are raging across Wall Street. The recent ignition came from Alphabet’s Q2 earnings call, as the company announced it would increase capex on AI from $180 billion to $205 billion, and Google stock (NASDAQ: GOOG) slumped despite reporting robust revenues. SanDisk stock (NASDAQ: SNDK) experienced a major crash on Tuesday, with prices falling to a low of $1,050. It ended the day’s trade at $1,096, after plummeting 14.25%.
The crash was sharp and fast and has shocked the broader stock market. Its competitors, Micron stock (NASDAQ: MU), fell more than 8.85%, and SK Hynix (NASDAQ: SKHY) plunged 8.98%. Traders are now fearful of taking an entry position in semiconductor stocks, as the correction is steep and is capable of erasing the invested amount. On the heels of the recent slump, SanDisk stock has tested the $1,000 floor and stands in risky territory. Another dip could lead to a psychological bearish thesis, eroding confidence in SNDK.
Also Read: When Will MU Stock Crash? Why the Latest Selloff May Be Temporary
What Exactly Can Make SanDisk Stock Dip Below $900?
SanDisk stock is seeing a dip in value due to the tight NAND flash supply, which could eventually shift towards the oversupply zone in late 2026 or 2027. This can erode SanDisk’s pricing power and give buyers a negotiating opportunity that can lessen its revenues. This is where the high-bandwidth memory (HBM) manufacturer stands at risk of losing its value.
The saving grace for SanDisk stock is that the company dominates the AI server clusters that require high-capacity enterprise QLC SSDs. The HBM supplier holds high margins and long-term contracts in this segment, which acts as a ray of hope beyond 2026 and 2027. The current low of $1,050 is a pivotal stress test but not the end of a rally. This has given a temporary breathing room before it picks up speed and heads north in the indices.